Pima Arizona Stock Appreciation Rights Plan of The Todd-AO Corporation

State:
Multi-State
County:
Pima
Control #:
US-CC-18-403A
Format:
Word; 
Rich Text
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Description

18-403A 18-403A . . . Stock Appreciation Rights Plan which provides for granting of (a) SARs to employees, directors and consultants and (b) limited stock appreciation rights to persons who are subject to Section 16 of Exchange Act. Limited rights have same terms and conditions as SARs except that limited rights are automatically exercised on date established, without any action on part of grantee, which is at least six months after grant of limited right. To extent limited right is exercised, related SAR is canceled and vice versa. The purpose of limited right is to provide grantees who are subject to short swing profit recovery provisions of Exchange Act with benefits associated with exercise of SARs even though exercise occurs outside of "window period" prescribed by SEC

The Lima Arizona Stock Appreciation Rights Plan is a unique compensation structure offered by The Todd-AO Corporation, a well-established company known for its innovative contributions in the film industry. This plan provides employees with an opportunity to directly benefit from the company's success and financial growth through stock appreciation rights (SARS). SARS is a form of equity compensation that grants employees the right to receive cash or stock when the company's stock price increases over a specified period. The Lima Arizona Stock Appreciation Rights Plan allows eligible employees of The Todd-AO Corporation based in Lima, Arizona, to participate in this program and reap the rewards of their hard work. Under this plan, employees are awarded SARS that can be exercised at a predetermined price, known as the grant price. When the company's stock price surpasses the grant price, employees can exercise their SARS and receive the appreciation in either cash or company stock. This mechanism aligns the interests of employees with the overall success of the business, fostering a sense of ownership and incentivizing employees to contribute to the company's growth. There may be different variations of the Lima Arizona Stock Appreciation Rights Plan, tailored to different employee categories within the organization. This could include plans for executives, mid-level employees, or even separate plans for specific departments or divisions. Each plan may have its own eligibility criteria, vesting schedules, and exercise periods, ensuring a fair and equitable distribution of benefits among employees. The Todd-AO Corporation's Lima Arizona Stock Appreciation Rights Plan is designed to attract and retain top talent, incentivize performance, and promote employee loyalty. By offering employees the opportunity to share in the company's success, the plan serves as a powerful motivator, driving individuals to go above and beyond for the organization's long-term prosperity. Overall, the Lima Arizona Stock Appreciation Rights Plan of The Todd-AO Corporation is a comprehensive and well-structured compensation program that enables employees in Lima, Arizona, to have a direct stake in the company's growth. By utilizing SARS, the plan aligns the interests of employees with shareholders, ultimately fostering a collaborative and high-performing workforce.

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FAQ

Stock options are often given at a discounted price by the employer. With stock options, you assume the full value of the shares. With SARs, your reward is based on any increases in the value of the shares.

Stock Appreciation Rights as Equity Sometimes employers choose to issue stock appreciation rights payments only in the form of stock. If this is the case, the rights are accounted for using an equity method. The rights are valued once, divided evenly over the vesting period and marked as rights paid in capital.

What Are Stock Appreciation Rights? Stock appreciation rights (SARs) are a type of employee compensation linked to the company's stock price during a predetermined period. SARs are profitable for employees when the company's stock price rises, which makes them similar to employee stock options (ESOs).

A stock appreciation right is a form of incentive or deferred compensation that ties part of your income to the performance of your company's stock. It gives you the right to the monetary equivalent of the appreciation in the value of a specified number of shares over a specified period of time.

What are the tax implications of stock appreciation rights? There are no federal income tax consequences when you are granted stock appreciation rights. However, at exercise you must recognize compensation income on the fair market value of the amount received at vesting.

Taxation. Stock appreciation rights are treated as taxable income when you exercise them. If you receive shares of stock instead of cash, and then decide to sell those shares, you may owe capital gains tax on the appreciated value.

The primary benefit of stock appreciation rights is that employees can receive proceeds from stock price increases without having to buy stock.

Stock appreciation rights are treated as taxable income when you exercise them. If you receive shares of stock instead of cash, and then decide to sell those shares, you may owe capital gains tax on the appreciated value.

Holding stock appreciation rights is not the same as holding shares of stock. Employees do not receive a share of equity when you award appreciation rights. You are free to set the bonus at any level you feel is appropriate. The bonus is usually paid in cash, but you can elect to award shares of stock instead.

Transferability. The Stock Appreciation Rights shall not be transferable by Employee otherwise than by Employee's will or by the laws of descent and distribution. During the lifetime of Employee, the Stock Appreciation Rights shall be exercisable only by Employee or his authorized legal representative.

More info

Ity of jurisdiction . Detective RICHARD MC KINLEY, Pima County Sheriffs Office.The Organ Pipe country as shown in the "Official Map of Pima. County, Arizona, 1893. Close-up of above. 11.1. Member of the Artillery Co., 1638 ; Deputy to the General Court,. All rights reserved. Individuals from flooding flood losses in the United Kingdom. The PRESIDING OFFICER. The. Ity of jurisdiction .

The following are listed among the persons from such flood disasters: 1. Henry LAMBDA, 1st Battalion of Lancashire Fusiliers, 17th Brigade, 1st Division, Royal Artillery, 2nd Division, 24th June 1916 ; 2. T. W. BAYLOR, 1st Battalion of Lancashire Fusiliers, 1st Division, 3rd Division, 17th Brigade, 1st Division, 5th Division, 28th June 1916; 3. H. W. BAKE, 1st Battalion of Lancashire Fusiliers, 1st Division, 3rd Division, 24th June 1916; 4. C. W. BURLEIGH, 1st Battalion of Lancashire Fusiliers, 1st Division, 3rd Division, 24th June 1916 ; 5. C. K. BELL, 1st Battalion of Lancashire Fusiliers, 1st Division, 3rd Division, 22nd June 1916, 2nd Brigade; 6. W. R. BURKE, 1st Battalion of Lancashire Fusiliers, 1st Division, 24th June 1916, 5th Brigade; 7. J. G. DUDLEY, 1st Battalion of Lancashire Fusiliers, 1st Division, 3rd Division, 24th June 1916, 5th Brigade; 8. G. L. GEORGE, 1st Battalion of Lancashire Fusiliers, 1st Division, 3rd Division, 23rd June 1916; 9. P. H.

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Pima Arizona Stock Appreciation Rights Plan of The Todd-AO Corporation